This study investigates whether and how book-tax differences (BTDs) are related to earnings management, tax management, and their interactions in Chinese listed companies. Using unique tax-effect BTDs obtained from Chinese B-share listed firms, we find that firms with strong incentives for...

This paper investigates the underexplored issue of whether and how firms manage their earnings when tax rates increase. We hypothesize and find that firms generally choose to manage their taxable income upward in a book-tax non-conforming manner rather than in a book-tax conforming manner before...

We find evidence that the adoption of International Financial Reporting Standards (IFRS) improves corporate disclosure. Specifically, we document that forecast errors of the predicted earnings issued during the Initial Public Offering (IPO) have significantly reduced in Australia following the...